December 22, 2004

CORRUPT FANNIE MAE EXECS get the bums rush. Quotable:
[Franklin Raines] had been successful in fending off efforts by competitors and congressional critics to strip away some of the privileges the company enjoyed as a government-sponsored enterprise, which allowed Fannie Mae to borrow money at below-market rates because investors believed if the company ever got into financial trouble, the federal government would step in and bail it out. However, a blistering report by OFHEO, which was made public in September, cast doubt on Fannie Mae's past earnings reports and even its financial soundness. OFHEO [suggested] that the company had employed deliberate accounting maneuvers designed to meet earnings targets and thereby bring bigger bonuses to top executives .. Raines, a former head of the Office of Management and Budget in the Clinton administration, earned total compensation in salary and bonuses of $20 million last year ..
UPDATE: The Astute Blogger notes that Clinton people have their hands all over this corrupt enterprise -- former Clinton Justice Dept. official Jamie Gorelick is another. Posted by Greg Ransom | TrackBack